A B737-800 IN CRUISE AT FL390 DECLARED AN EMER AND DIVERTED DUE TO R ENG LOSS OF POWER; VIBRATION AND TAILPIPE FIRE. CAUSED BY INTERNAL OIL LEAK.

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THE R ENG DECREASED 12-15 FT N1 WITH NOTICEABLE VIBRATION. VIBRATION REDUCED TO 1 UNIT AT IDLE. STARTED DSCNT WITH CLRNC; TURNED TOWARD MSY; AND DECLARED EMER. WE WERE ON THE ILS XX AT 1800 -1500 FT 'WHEN THE FAS RPTED FLAMES COMING OUT OF THE BACK AND FRONT OF THE R ENG. THERE WAS NO FIRE LIGHT' BUT SHUT DOWN AND PULLED THE R FIRE HANDLE. ON THE GS USED THE OTHER FIRE BOTTLE. 'ON THE GND ASKED TWR HOW OUR R ENG LOOKED AND THEY SAID NO FIRE. LATER AT ABOUT 60 TO 40 KNOTS TWR SAID FLAMES COMING OUT OF THE R ENG. STOPPED THE ACFT DID THE YOKE EVAC CHKLIST PUTTING THE PASSENGERS OUT ONLY THE LEFT EXITS. VERY SOON AFTER I ORDERED THE EVAC; TWR RPTED THE ENG PUT OUT BY THE FIRE DEP. I USED THE PA TO STOP THE EVAC. I SAW A FIREMAN GIVE ME A 'SAFE' HAND SIGNAL. THERE WERE 46 PASSENGERS OUT OF THE PLANE AND 66 STILL INSIDE. ONLY THE LEFT SLIDES WERE USED. CALLBACK CONVERSATION WITH RPTR REVEALED THE FOLLOWING INFO: THE RPTR STATED THE CAUSE OF THE ENG FAILURE WAS A REAR BEARING SEAL FAILURE ALLOWING ENG OIL TO BE DUMPED INTO THE EXHAUST GAS PATH TO BURN. THE RPTR SAID AT NO TIME WAS AN ENG FIRE WARNING RECEIVED. THE RPTR STATED THE PARTIAL EVAC OF THE AIRPLANE CAUSED NO INJURIES.