volvo 120sb saildrive leg lower bearing carrier

Given what you've said I can think of two things, wear in the bearing, causing the propellor shaft to vibrate and allowing oil to pass the sealing. Or the shaft is not straight anymore for some reason.
This could be spotted by excessive noise levels and/or vibrations.
Also make sure the surface of the shaft at the point of the sealing is smoothe, no corrosion, dents or whatever.

Ciao,

Arno
 
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