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2000 Outback Limited, Dual Range 5 Speed
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906 Posts
That doesn't seem to be the source of the leak there's no oil around it, I would be looking more at the seal which has a bit on the outside in the second picture.
 

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1999 30th Anniversary Legacy Outback DOHC 2.5L 4EAT, 2008 Impreza WRX 2.5L 5MT, 2008 Impreza Wagon 2.5L 4EAT
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1,224 Posts
Most likely the Cam seal (use Subaru ones). I believe the 'Crack" you see may be a joint in the head.
 

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01 Outback LL Bean
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2,462 Posts
Remove timing belt. Lock CAM and remove bolt and sprocket. Replace seal. Recommended to use a good seal puller tool. That seal needs to be seated at or close to the surface. If it is pushed in too far it will block an oil passage.
 
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