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YOu may have an oil leak into the coolant, but not necessarily a loss in compression. Don't let the coolant get into the oil, or get low. I guess external head gasket failure imilar to the gasoline engines.

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have engine oil getting into cooling system and overflowing out expansion bottle. Have replaced oil cooler. No overheating problems no smoke car driving ok. Any ideas on what is causing this

WISH we could get that engine here.

 

But those are CLASSIC gasser HG issues here - especially for the DOHC 2.5's.

 

On our enginers they don't cause white smoke, they will pass a compression check too.

 

The combustion gasses leak into a water jacked and cause a bubble in the cooling system which causes residue in overflow bottle.

 

The classis symptom of the air bubble is that the radiator is low and the overflow is full (and has run over and lost coolant).

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Thanks for reply. Is there any way to tell if it is head gasket. There are 2 on the boxer

It would be wise to do both head gaskets at the same time. 

 

A pressure check to the cooling system should show results.

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would replace head gaskets if I knew for certain that was the problem. I have already replaced oil cooler after being told by mechanic that was causing oil into coolant. If anybody has had this problem and got it sorted would really appriacate your input.

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no one here is familiar with diesel engines unfortunately as we never got them.

 

are you actually loosing oil? 

how positive are you that oil is going from engine to cooling system?

maybe oil accidentally (oil change place) got into your coolant and keeps showing up because oil and water don't mix and it'll never come out until the system is thoroughly flushed?

 

Assuming it is a engine failure, this should be fairly simple it is either:

 

#1 Turbo

internal seals are blown and the turbo needs rebuilt or replaced.

 

#2  Headgasket

Itypical headgasket tests will be pointless, compression test, leak down test, exhaust in coolant, white smoke - none of those will be symptoms if it's simply an oil jacket spewing over into a coolant passage.

 

#3 Oil cooler

never heard of it happening on other oil cooler equipped subaru's, but maybe the cooler could fail and allow some cross over internally?  this would be rare and the last thing i'd consider...but it is really simple and easy to replace.  requires like one socket, that's it.

 

That's the only places i know of that Subaru's have oil and coolant coming together with components/gaskets that could possible fail and cross contaminate.

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I just had a similar issue with our 94 legacy wagon. I had oil in the coolant, however, I still took  it on a 2300 mile round trip up north. No overheating, no smoke either. I can only assume a headgasket leak that was only going one way. I just bought a new motor and dropped it in, but I'm sure a new diesel isn't going to be the equivalent of $300 US.

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I also had this on a 2.2 i did headgaskets and still oil in coolant turned out to be the red block half oring was leting oil in when cooling sestem cooled down and went under vacume. It was a real pain to track down I also think head gaskets but this is unfamiliar engine and uses oil coolers and has higher comp and more cly preshures. Are you shure is not deisel in the coolant ? I also think if any subaru head was to crack this whould be the heads that whould be under the most stress. If the headgasket is gone you should see oil leaking externaly at head seam

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