Why would be oil be blowing out the dip stick in a Saab turbo 900?

I had this happen years ago with a Suzuki Samuari ... smog hoses would blow off engine, oil would blow out every conceivable connection. Turned out it was a clogged catalytic converter, causing excessive back pressure, blowing past piston rings, and pressurizing the crankcase.

Since your car is turbo charged, it >might< be a frozen turbo that's creating backpressure, or a defective catalytic converter.

Unfortunatly with my Samurai I took it to a shop for diagnosis, and they said the engine was shot. I bought a rebuilt engine and installed it, only to find out that the same condition occurred, and finally traced it to the catalytic converter.

A quick test is to take a mallet and bang on the catalytic converter. You should NOT hear anything rattling around inside! If you do, it could be the 'core' inside the catalytic converter has broken loose, and is pushing up against the out-pipe and causing the backpressure.

Hope this helps...but I'd be worried about the turbocharger...