Oil in bucket while testing

[Slaz]

Hello,
I have a 1995 Nissan NS5B. It has not been run for a long time and there are probably less than 25 hours on it. Got it from a relative that hardly used it. Was on a sail boat. Fresh water.
I set it up on a saw horse in a bucket. It started on the 3rd pull surprisingly. I let it idle for about 5 min. Then ran it up to about 50% throttle for a couple of minutes. It smoked a fair amount then cleared. When I turned it off and the water settled I noticed the water had a fair amount of brown oil in it. See pic. Also in the second pic the two holes circled in red had a milky/paste oil around them, small amount. Wiped it off before I took the pic.
I'm wondering if this is normal for this engine and if not what is the most likely problem.
Thanks!

 

[ahicks]

What's the possibility the engine was pickled prior to storage?

In any case, I wouldn't worry about it too much.

 

[Scott Danforth]

And where do you think most of the 2-stroke oil goes when you run a motor lightly loaded? Out the exhaust

 

[Slaz]

Learn a new term every day. Had to look up pickled engine. Good to know.
This motor was just remove from its original boat and placed on a saw horse for years.
I was thinking maybe a ring or gasket was letting old milky gear oil get by. Will be testing it out on a new flat back canoe this weekend and will watch/listen closely. Fingers crossed it goes well.

 

[Alumarine]

That's normal for a 2 stroke.
Unburned oil comes out the exhaust ports.

 

[MattFL]

2-strokes are dirty, more than half the fuel and oil goes out the exhaust unburned. That's what you're seeing in the water, and that's the leading reason for the move to 4-strokes in many countries (emissions regulations). That's also why carbureted 2-strokes guzzle gas as compared to 4-strokes, much of it passes through unburned.

 

[Sea Rider]

A 5 HP motor consumes peanuts cost in fuel compared to higher HP ones, once installed on canoe, warm it up a cupple of minutes at idle/neutral and then go for a wot run as if stealing the combo to get rid of all the unburned oil leftovers inside middle to lower leg. That motor uses 50:1 fuel/oil ratio...

Happy Boating