My 300SDL has started smoking and consuming lots of oil. The smoke smells like burning engine oil and is gray/blue. No blowby is detected if I remove the filler cap while the engine is running. The interior of the compressor side of the turbo is oily and has a small puddle in the intake. The turbine side is sooty, not oily.

I suspect a failed turbo oil seal on the compressor side. What do you think?

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