Is that a smushed rubber O-ring on the positioning pin your red arrow points to?
Nope, that's not the cause of the leak although it does simplify the oil's passage to the floor. That dowel simply locates the bottom of the front engine cover and needs no O-ring at all. Must be a PO's addition. Toss it.
The potential leaky O-ring is accessed by removing the Ignition Trigger Unit (ITU) aka: bean can... That big, round, shiny thang above the locating pin. Reference NHMike's tip on marking bean can and case for easy replacement positioning.
Be sure you have removed the negative battery cable prior to opening the front cover. There is an electrically "hot" spot on the diode board that, if contacted by the front engine cover during removal/replacement, has the potential to destroy the diode board. O-ring=cheap. Diode board=$$$$$