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There should be no oil leakage around the oil filter housing.

The new O-rings should be lubricated with oil before installation.
The proper torque values are molded into the housing cover :lightbulb:

This upside-down remote oil filter location is a design compromise, likely because of space issues. At least the M5 has an access panel, the M6 does not. It would be easier if the housing was on the top of the engine (like most BMW models and the new M3), but the remote housing is still much better than a spin-on filter stuck to the side of the engine block.
 
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