UPDATE:
I have sold the boat so have not been able to physically inspect or get better pictures.
The photo of the port side 'hole' is some old paint. My apologies for assuming it was ahole.
The starboard side hole goes into the cavity. No oil or hitting anything when sticking a thin screwdriver in there.
Have also checked a later model Mercury outboard and there is a hole on the starboard side at the same height, just further to the back of the casing.
Tending to agree with
Rick Stephens, that it is a drainage/vent hole to avoid cold or wet related issues.