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hole behind cam seal? intentional? 900

1991 940se turbo-225K

i am in the process of replacing the front seals and timing belt, but when i removed the cam seal, there is a hole in the head facing behind it. i didn't put it there, and, never having performed this operation before, am not sure if it is supposed to be there. is it to allow oil in the section between the seal and the head, or is it some sort of damage that consequentially has been pouring oil out the front of the engine? the hole does not appear to have been machined, seems more like a chip, but like i said, the seals have not been replaced since i have owned the car, and the leaks didn't occur until long after i bought it, so it hasn't been touched. i searched the archives and didn't find a definitive answer as to the nature of the hole or whether a new seal may fix the problem, so i'm looking for a little expertise before proceeding.

also, there has been super excessive greasy exhaust buildup on the rear hatch window. i know the oil leaks can be attributed to the fact that the pcv hoses were clogged (and the small nipple broken off the valve-don't know how long that's been like that-oops), but what causes this? is it just the oil leaking and running down the outside of the exhaust pipe/engine/underbody, or is it the exhaust itself?

thanks for the help, and happy new year to all!
--
'75 164e(?), '87 240gl(350K), '84 240 gl(233K), '91 940se(225k+?)






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