Both my GCV160s leak oil from the engine housing at the governor shaft. I pulled one engine apart thinking there was a seal inside and found nothing and no obvious setup for a seal that might have been there. I also had a check of the IPC at my local mower dealer (clueless people they are!) and no luck in finding any obvious seal that should be fitted. What I did find was that the governor shaft runs through the housing with no bushes, no seals, and no provisions for oil control. The shaft itself showed no signs of wear which suggests maybe it is the alloy engine housing wearing out?
It's at the point with one engine that it changes its own oil the leak is so bad. The other is still at the point where it is a genuine issue in terms of cleaning and mess.
Anyone have a history with this or better still know of a fix?