Syn oil is not really needed, I use the standard Merc 25/40 marine oil. Many use the 15w/40 certified for diesel and gas engines.
If you wind up having to change to a carb, you will have to source (used) a cast iron intake for a Ford 302 (5 liter), and Holley does still sell brand new carbs that are calibrated for that size engine. It will run into some money but you will be free of the NLA syndrome of old marine EFI systems, because Holley parts are everywhere in the aftermarket.
All Holley Marine Carburetors are designed to meet Coast Guard specifications. A marine carburetors fuel metering system is calibrated to compensate for unique engine loads found on boats. The J-style vent tubes direct fuel/fumes back into the carburetor for safe operation while on rough...
www.holley.com
This is calibrated for the Ford 5.0
the distributor is more challenging, here is what shows up in the OMC catalog for your engine/year, it does not look like the Prestolite BID system used on the GM V6s and V8s.
View parts diagrams and shop online for DISTRIBUTOR parts, 1994 Stern Drive 5 50FACPMDA. Offering discount prices on OEM parts for over 50 years. FAST $4.95 shipping available.
www.crowleymarine.com
there is this, I have no idea on how good they are....
Ford 221-302 Billet Distributor - Pertronix D230800
www.hardin-marine.com