Perkins engine blowing oil dipstick?

generally caused by compression gases getting past worn (or stuck) piston rings, h as to find its way out some how, the breather is designed to cope with so much and then it chooses the next weakest point to escape the engine block in your case the dip stick your first point of call is checking the breathers not blocked, some times they get gummed up and if theres a wire gauze inside it can restrict the flow to atmosphere, you can usually visualise it easier by running the engine with the oil filler cap off, hover a rag over the top of the filler neck with the cap off as the engines running (some oil will flick out) and watch the gases venting, if it looks like steam boat willy you have an expensive problem.
 
I assume it's the japanese perkins that volvo use as there base engine?
If it is I have one in a digger which is in realy poor health. I had the head off several years ago & it had numerous scores in the bores & a huge wear ridge I fixed the damaged valve and put the head back on thinking it lasts as long as it lasts. It's never missed a beat or failed to start & amazingly doesn't use much oil
It does have massive back pressure from the rocker cover breather, almost as much smoke as out of the exhaust
I'd definitely check the breather & make sure it's clear as there may be a gauze built into the rocker cover,once cleared to prevent oil mist in the bilge duct the breather into the air intake to catch any oil mist
A new engine may be the eventual answer but you might get a bit more use out of it first
 
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After checking the crankcase breather get a Compression Test, that will tell you whether the rings/pistons are in good condition or need replacing.
 
Some engines vent the crankcase gases into the air intake via a rubber tube which can get blocked allowing pressure build-up.
 
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