I'm suspecting by the motor colour,(blue leg) that it may be a 7.5 or 10HP?, then no, it doesn't have an oil filter. If it was my motor, I would seriously take a look at the upper seal by the water pump impeller and the seal behind the prop, thats another place for the water to get into the lower unit. Is it worth the hassle, like they say, you pay now for a couple of gaskets, or later for a set of gears. Your choice.