I replaced the VVT hub (exhaust camshaft gear) on my '01 S40 a few years ago. Have no idea if a 2007 V70 is the same, but I suspect it is a similar repair.
It's a tedious procedure, but not terribly difficult with the right tools and a good reference manual. I got it right the first time.
I was fooled into thinking my problem was a leaking cam seal and did that repair first only to find a week later that oil was still leaking up there.
Did the gear and that fixed the problem.
I think the VVT hubs tend to go (become leaky) around 150,000 miles.
It makes a real mess at the front of the engine and will shorten the timing belt life significantly - which you don't want to happen.
Sounds like the OP may also be having a PCV issue.
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