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If it's installed anywhere on the stock oil pan, it's already wrong.
The dump side of the oil drain needs to drain above the oil level.
Assume the oil level is going to be as high as the stock oil pan flange.
This is why the stock 13BT turbo drains into the front oil cover and not into the stock oil pan.
The oil draining off the turbo needs to have the least resistance going back into the oil supply / pan.
Check any of the turbo books - Corky Bell's Maximum Boost or Hugh McInnes Turbocharging (or any other turbo reference) - they will all tell you this.
If this is the case, you're getting oil backing up into the turbo CHRA and exiting either from the dynamic seal(?) in the compressor or the piston compression ring through the turbine.
-Ted
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