Club 80-90 Forums

Turbo diesel 1600cc, about 1986ish. When the engine is running there is smoke coming from the dip stick hole where the outer sleeve meets the engine. I can see oil in the hole. Should there be a seal between the outer sleeve of the dip stick and the engine?
Thanks.

Green rubber o-ring, about 27p from VW.
unbolt dipstick, withdraw, clean, fit new seal, re-instal.
easy, chep.