Oil filter Mounting

[Smoke]

I am building a Rod using the 1uz and need to gain more space for the for the filter.
The engine is from a 1998 LS400.
and has a sandwiched water jacket as seen in the photo.
Can anyone tell me why Its fitted ?
There must be a good reason that its fitted in the first place!
if this is removed what problems would I have?
The gap currently between the chassis and engine is 40mm.
Or does anyone have an ideas that will help with fitting?
Smoke

 

[XR8tt]

It's an oil cooler.. Or heater in cold areas to assist in cold conditions...
It can be removed... Mine didn't have the cooler ..
I fitted a remote oil filter kit...

 

[Smoke]

thanks XR8tt

Like a heat exchanger ??

 

[Bushwhacker]

Soarer V8s don't even have one as standard.
Just link the two hose ends after you remove the 'cooler' to keep the coolant circulating as normal.

 

[XR8tt]

It's an oil cooler.. Or heater in cold areas to assist in cold conditions...
It can be removed... Mine didn't have the cooler ..
I fitted a remote oil filter kit...

Like this remote filter..