This can be tricky. The base of a distributor is sealed with several "O" rings and to replace them requires removal of the entire distributor. A shop will charge no more than an hours labour for this. Or a "Quick" fix is to loosen the bolt securing the distributor and lift it out slightly and the wipe all oil away from the mating surfaces. Then use a heat resistant silicone and apply a small amount to the mating surfaces, drop the distributor into place, secure the bolts and wait several hours and then start.
It can leak oil out from the rear of the intake manifold gasket. The oil sending unit is right behind the distributor and it can leak oil too. There is also a gasket that fits on the bottom of the distributor where it goes into the intake that can leak. And the worse thing it could be is the rear main gasket leaking oil and you would have to remove the transmission to repair that.
AnswerBefore you go too far assuming the distributor is at fault, start the engine and remove the oil fill cap.If you get a lot of air coming out, it may be what's called "blow by". That is often the result of not changing the oil on schedule. The rings become trapped in oil "sludge" and end up failing to provide an adequate seal. When that happens, combustion gasses leak past the cylinders and into the crankcase. The combustion gasses can end up creating enough pressure that it pushes oil vapor out any opening, including the distributor shaft or the rear main seal. Without that blowby pressure, the oil will not be able to make it up that distributor shaft and leak out.IF you found oil inside the distributor most likely it coming from the seal on the shaft of the distributor. To fix this problem you will have to replace the distributor sub assy.
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