Turbo Oil Seal ?

[FJota]

I have been getting alot of blue smoke at idle and acceleration. I took the intake pipe off and found a puddle of oil at the tubo intake. Upon further inspection I noticed that the rubber pipe between the air filter housing and the crossover pipe is all cracked.

Could it be that this pipe is collapsed, and therefore sucking oil past the oil seal in the turbo? If so will the seal be damaged? ie. rebuild time?