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This topic is discussed almost every day.----It could be normal.-----Any water in the gear oil ?----Lower units are pressure tested to find out if there are leaking seals. ----Your local shop will be happy to do that test for you.
Well that means it's a drain for the mid section. Since exhaust gasses and cooling water pass then you have combustion residue including unburned oil and water. Normal. If it were below then you might be thinking about the gear box leaking, but not with it above.
Thats what i was thinking but what is leaking is nice and blue like the lower unit oil. If it really is the mid section drain maybe the shift shaft seal? I just changed the water pump so i know the drive shaft seals are good.
Could you provide a better photo, one not taken at some odd angle and lousy lighting? It really is hard to figure out what is I looking at. Is that a gouge? One more thing, wipe the oil off
