Your rightI think you have an exhaust leak. The oil is unburned oil that is exiting the cylinders. It could be the exhaust gasket from the engine to the manifold, the manifold gasket to the pipe, or a busted bellows in the VES. I'm betting VES, there is a ton of oil on the underside of that diaphragm. If the diaphragm ruptures, it will push the oil out the hole in the top of the bellows under pressure and give the dispersion pattern you are seeing. At any rate, that's easy to check by pulling the valves for exam/cleaning.