That line passes through the water jacket at an upward angle and comes out under the pushrod cover. Then it goes up into the valve cover area to provide lubrication to the middle of the rocker arm shaft. The sheet metal cover beside it is the "oil distributor"- - - -a spring loaded control valve that blocks off oil flow to the rocker arms until the oil pressure to the main bearings is at least 15 PSI. The engine oil circuit is designed to sacrifice the rockers if necessary, while providing adequate lubrication to the crankshaft.

That flex line is WAY too close to the exhaust pipe. I'd suggest using a 1/8" NPT 45 degree street ell between the tee fitting and the flex line attachment point to give the flex line some extra clearance. A melted flex line there will empty the engine oil in a couple of minutes at idle- - - - -sooner at highway speed. Another approach is to use a 4" long steel or brass pipe nipple between the block port and the tee to move the whole works past the exhaust pipe.
Jerry

"It is better to be silent and be thought a fool than to speak and eliminate all doubt!" - Abraham Lincoln
Cringe and wail in fear, Eloi- - - - -we Morlocks are on the hunt!
There is nothing noble in being superior to your fellow man; true nobility is being superior to your former self. - Ernest Hemingway
Love your enemies and drive 'em nuts!