I noticed sealant covered all over the drain nut. What are the possible causes and remedies for this situation?

It looks like the thread for drain nut has been damaged due to over-tightning (by the previous owner) but still an insight from you guys will be helpful.

Edited 20 January, 20215 yr by Burhan

Use vacuum extraction to remove oil via dipstick tube in future, or attempt thread repair, or change sump.

Looks like you're also missing the Oil level sensor on the sump. 

Wow, some top bodging there!

 

I'd recommend replacing the sump.

Sumps are cheap enough. I'd be replacing it along with a new sump plug. It's a good opportunity to check the oil pump strainer whilst you're there as well as they are prone to clogging up on the 1.8t's.

Edited 25 January, 20215 yr by Paul thornton

I have already ordered a new sump but as you have suggested to take a look at pickup pipe I am inclined to replace that one as well.

As of now, I am replacing timing belt kit, auxiliary belt, water pump, Engine oil sump and possibly oil pick up pipe.

 

Is there anything also worth replacing while doing the above mentioned components?

As always your replies are much appreciated.

Rocker cover gasket is probably leaking unless it's already been replaced so check that. 

 

Again, unless it's already been replaced, dip stick and tube as the plastic goes brittle, crumbles and all that generally ends up in the sump.

 

Strainer can be cleaned out rather than replaced but it's your call.