WHAT? Where is the oil leak? Is it coming from the top of the head on the driver's side and running down? That is a camshaft seal and is easily replaced.
Most people don't know there is an oil separator box under the intake manifold, and when that gets clogged up with gunk your crankcase pressure is going to increase and start telling you by leaking oil every where. Hopefully not at the rear main seal at the transmission, which is an expensive fix.
You do NOT need a new engine, you need a Volvo mechanic that knows what a Volvo is. Replacing the oil separator box and vacuum lines is a 3 hour job for a good mechanic, 5-8 hours for DIY not so good mechanic, and about $150 in parts.
Get it fixed sooner than later, at a shop that works on volvos.
Klaus
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Just driving a 1998 V70R :)
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