That gasket material has familiar look---
Thinking its a dual purpose material.
I've used that along with paper bags and even tried tar paper in a in pinch.
But the best is a roll of real gskt material.
That glob of lubricant looks like its a water absorbent that is put in Hytran.
I like the water to settle in the bottom so I can drain it off rather than mix.
But that's just me.
On my bigger tractors that have 15 ++ gallons of oil, its a good practice to loosen the drain plug and drain off a pint or so of the water/condensate every year.