The white paint shouldn't be there so just ignore.
The oil will be the crank shaft seal or cam seal leaking.
Looking at the timing cover I'd say crankshaft.
Have you got the timing pins etc ?
The cam pulley timing mark should have lined up with the casting mark, near the left arrow in your pic.
'95 Defender 130 Single Cab
HS2.8 TGV Powered
------------
98% of all Land Rovers built are still on the road.
The other 2% made it home.
Cost difference between Britpart and Genuine seals: £2.04. Knowing that your brakes won't fail at any moment: Priceless.
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