Could someone tell me why and how oil would get into the pick-up col are

The distributer seal is bad.

The distributer seal is bad.

Where would the seal be at?

Usually the distrubuter has to be removed. The shaft of the distributer goes through the seal. It's usually pressed in like most rotating shaft seals.

The easiest way to remove it is to drill two pilot holes opposite each other and insert a sheet metal screw. Grab with two pair of pliers and pull directly out.

Remember the distributer has to be set back in the same position.