Like others have said, it is running on its own oil. I have seen this several times, usually when the turbo has been replaced and the intercooler has not been drained of the oil that has collected in it.
before replacing the engine, check;
That the oil is not overfilled
The oil drain pipe from the turbo is not damaged, kinked or blocked (they may have stuck a jack somewhere they shouldn't while removing the mount to change the cambelt)
That the turbo is not knackered (after checking the above, remove the intercooler pipes and run the engine to see if oil is being blown out of the turbo)
Make sure you drain the oil from the intercooler before putting it back together.
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