Peugeot 306 TD "breathing" oil - Roy Beasley
I've just had the cam belt done on my 1996 Peugeot 306 turbo-diesel (155k miles). The chap who did the work tells me that my engine is "breathing" oil from the crankcase vent (I pulled one of the hoses off the intercooler and can see that the inside is wet with oil). What is the cause of this sort of problem? Worn rings? The car doesn't appear to use significant amounts of oil, nor is there any significant smoking from the exhaust, other than on cold starting (and even then it smells of diesel, not burning engine oil). His advice was to leave it be and only go trying to fix it if it fails the MoT (the car only cost me £400, so I really don't want to go throwing money at it).

However, I notice that there is a round device, some sort of valve I think, located on the front of the intercooler. Two hoses connect to it - one goes to the oil filler neck, the other to the air intake ducting to the turbo. Anyone know what this device is/does, and whether a failure here might account for excessive oil getting into the air intake?
Peugeot 306 TD "breathing" oil - DL
Nothing to worry about, Roy - all diesel engines exhibit this oil carry-over, for various reasons.

Aslong as your engine is well serviced, it will go on for a lot longer yet!
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Peugeot 306 TD "breathing" oil - Quinny100
All XUD's get a bit of oil in the intake, although it does seem to increase with mileage - I had a Xantia TD on 220k and that used to collected quite a bit in the hoses but it always sailed through its MOT and I just cleaned out the hoses every time I changed the oil.

I thought the cause was probably the oil seals in the turbo but I was never particularly concerned becuase it never needed the oil topping up and it didn't blow any blue smoke even at full throttle.
Peugeot 306 TD "breathing" oil - Roy Beasley
Thanks for those reassuring replies.