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looks green and rubbery, hey - it's your variocam actuators if so. expensive to buy, and expensive to replace (engine needs opening). actually more expensive to fix than ims. run a magnet over it to confirm - if magnetic then engine probably done (symptom of metal on metal action - ims, but worn enough to have spit metal throughout the engine - good luck getting that out).
if actuators, engine can stay in the car if you take it to a tiny indy with tiny hands. otherwise any by the book porsche shop will drop engine and charge more $. total failure is not catastrophic put will produce a check engine light, loss of variocam action and loss of power. note that there is an actuator on each bank - check your cam deviation; big deviation on one side will let you know what side to replace.
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