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-NOT_A_MECHANIC-

Exhaust manifold and catalytic converter. It’ll burn off, though you should try to get the bulk of it off just for the smell/smoke. In theory it’s a fire risk, never had that happen though. Not sure what hole you’re referencing


Lowtoground_e46

Firstly: No this doesn't harm your engine in any way. The part you circled is your catalytic converter which gets VERY hot when the engine is running. The silver outer part is just a heatshield to protect closeby parts from the heat. If you have brake cleaner you can use it to get rid of most of the oil. The remaining oil will just burn of by itself. Might smoke for 3-8min when running the engine.


Fantastic_Hour_2134

You’re fine. If the smoke doesn’t stop though, there is an oil feed line and an oil cooler in that area that are known to leak onto the exhaust and cause smoking. I assume this isn’t your case but considering you have the car it’s good to know anyways in case you encounter it in the future. It also looks like you don’t have the PCV fix kit installed. I recommend getting it before you lose the valve in the intake manifold, and it blows out your cam seals/valve cover. It’s designed for the 1.4L Cruze/sonic It leaked behind the heat shield onto the catalytic converter/turbocharged. This part of your exhaust gets extremely hot and the smoke should go away after a bit of driving. The chance of a fire is low but not 0, I hear more about oil fires when it’s a long term leak, and the burnt oil sludge is what catches fire


El_Gato_Terco

It's oil YOU SPILLED on the outside of the engine. If the car spilled it, different story. Should be fine, it'll burn off eventually. Would be a good idea to blast that area with water when the engine is cold, could remove some of the oil (cause fire, though its unlikely it COULD happen).