Turbo Leaking Oil/ No Smoke, Not Oil Lines

[Gumcrew2]

Helping a friend fix his '98 V70-XC AWD:

Wiped down everything clean (entire oil pan was covered in oil). Ran the car in the air with us looking all around under/above it. And we're able to narrow it down to the turbo absolutely. But not which part:
No smoke from the turbo, at all.

The bottom 50% of the turbo is oil covered/ WET, the top half (viewed from above) is bone dry. The only oil you can see from above is a small puddle forming under the turbo on the back of the block itself in a little cuttaway of alluminum.

It appears as if oil is coming out of the driver side of the turbo's main opening. I know SOME oil is normal, but we're talking losing a quart every 100mi. There is some oil on the turbo oil-input line where the rubber meets the metal of the line, but it did not visibly leak from there when running looking right at it. There is also a small amount of oil residue on the turbo oul return line to the block, but the gasket appears good and it is a minimal amount of oil compared to everything else.

I know very little about turbos specifically. So I'm assuming something inside the turbo has failed and it needs to be rebuilt/resealed in some way as that appears to be the major oil leak.
Am I sound in thinking this?
Should I replace the turbo oil return line/input lines and gasket/O-ring first before condeming the turbo? Seems like a lot of effort as it's impossible to get to anything over that front diff/tcase/beveelgear whatever.

Thanks in advance
Saul

[Juan62]

It sounds like your Turbo Drain Pipe seal: go to any of the sponsors website above. I replaced mine in about 20 minutes. IPD has a kit with instructions (review this instructions) before you purchase to make sure this is your problem. The rubber ring is very important to replace because youe nust ewmove the metal pipe to replace it...much like the oil dip stick. Hope that helps.