4 HP 2 stroke engine 2002 flooding? lower unit

[faiaoaehe]

This outboard started fine, then suddenly died under full throttle, leaking fuel all over. When checked found what looks like a grommet from lower unit under the cowling, engine leaking oil all over. Found what looks to be a bad o ring on carb float bowl, and replacing, but what about the lower unit, what should be done, besides replacing grommet?

Thanks

[boats.net]

Only oil in engine is oil mixed in gas.