Thanks Racerone, I started researching steering related parts and found out that it's OMC part #834016. It's just a thru hull fitting to allow a steering cable to pass thru. Inside the transom there is an angled hole drilled behind it. Was used for the offshore bracket models. My boat has hydraulic steering so I assume it's just an item that the builders put for use of a conventional cable steering system. Thanks for your help!