Bad Oil leak through mystery sponge (1 Viewer)

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Joined
Jul 17, 2025
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United Kingdom
Hello,

I have recently become a owner of 1997 Auto 3L Diesel 1KzTe Colorado/Prado.

Whilst trying to bring back to life I have had large oil residue and leaks from top of the engine which was all over the Turbo side.

I firstly changed the gaskets on Rocker Head due to signs of leak. Alongside with the Halfmoon.

Next I moved on Turbo feed line which has a massive crack in, as you can see a new one has been fitted.

During the work I found this strange sponge that is located at the start of the transmission box and below the engine. Full with oil.
I am assuming this is used for oil soak from Rear Main seal and thought that it was full due to the Rocker Gasket and Turbo Oil feed being the main problems.

However, after all the work, the oil start to drip, and I mean leaving decent amount of Oil on the ground. (I circled the places of leak).

It is the Sponge thats leaking where its glued on the bottom of the transmission. nothing else around or atop the Transmission.

I would like to ask for advice on how to proceed, I am aware that I most likely will have to remove the Transmission to see the true location of any additional leaks and maybe to replace the Rear Main Seal. But if there is any alternatives and other locations I should check would be much appreciated to know!

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It’s the oil seal from gearbox .
You must take down the gearbox , change 15€ of seal , and all goes well .
 

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