After digging around it looks like it could be a seal. I might have to clean everything up as best as I can drive the car a bit and see where exactly the oil is coming from:
Quote:
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Seal leak on charge air hose between intercooler and turbo.
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https://xoutpost.com/748328-post3.html
This thread refers to the seals in #12:
The best thread I found refers to to oil return line:
https://www.e90post.com/forums/showthread.php?t=1576564
Looks like E90post is the best technical resource for these engines due to higher volume of participants for anyone looking for info in the future for their x5 35d.