The oil is coming out because the block is getting presurized by the normal blow by gasses which are part of how an engine runs.
To extract these gasses Toyota (and others) use a Positive Crankcase Ventilation (PCV) system.
What motor do you use?
It could be a blocked PCV valve. For an N/A motor it is normally in a hose running from either the side of the block or the rocker/cam cover that ends in the inlet tract. The gases and some oil gets sucked into the motor to be burnt. Fresh air is then drawn in through the breather.
If there is a lot of oil, then it could also be a sign of a very worn motor. The rings have lost their seal on the bores and most of the power is literally blown past the rings and out the breather hose.
If there is no PCV system then run a hose from the breather to a catch can, which will stop the enginebay from oiling up.