
Sibelius Eos Owm |

I see the Drink Oil ability suggests there's a chance that a rokurokubi might have a creature grabbed within its jaws, however there is no corresponding Grab trait on the jaws attack. Technically, as written I don't think there's any way for Mo to have a creature grabbed in his jaws (as he would need to use the standard Grapple action if he doesn't have a special grab, and since he has hands, there's not even a case to be made for 'creature needs to perform grapple without hands').
There are two obvious solutions for this--you could give the rokurokubi's jaws strike a Grab special action, so that he could spend an extra action on a successful strike to attempt to grapple with that strike. For a slightly less powerful option, you could alternatively just give his jaws strike the 'grapple' trait, which wouldn't give him any special actions, but would allow him to use his jaws reach on grapple attempts.
Or, last option, one could also ignore the portion of Drink Oil that refers to a circumstance that can't really happen as written, and treat it as an error. It seems possibly either the designers chose to remove Grab from the rokurokubi and forgot to eliminate the extra text, or planned to give them Grab and forgot to include the stock Grab line under actions.

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His reach more or less just gives his jaws strike more range, allowing him to attack PCs who aren't exactly adjacent, but also allowing him to position himself so that he doesn't have to end a turn adjacent to a PC; he can still bite them, but on their turn if they lack reach or a ranged weapon, they need to spend one of their actions to Step or Stride to get up to him if they wanna use a melee Strike.
He doesn't have any special ability to Grapple or Trip, but can still take those actions as normal options if he wants, I suppose.
Looking at the text for Drink Oil itself, I strongly suspect that at one point early on his jaws Strike DID have Grab as an option, but that during editing, in order to make the stat block fit on the page, that bit was cut late in the process (adding "plus Grab" would have caused his jaws strike to break into a 2nd line, which would have cascaded text flow issues, etc.), and then the mention of him grabbing someone with his jaws in Drink Oil got missed. Again... just my educated guess as to how this happened. It doesn't change the rules at all, of course, and Drink Oil works just fine without that "and doesn't have a creature grabbed with their jaws" stinger in the requirements, so feel free to just ignore that bit.
Unless, of course, in your game, something DOES happen to make his jaws used up and not available for drinking, I guess... but that's a case of common sense. You can't Drink Oil if some PC did some fool stunt like running up to put a barrel over his head and then held it in place and you thought that was goofy and said, "Fine, that's a DC 30 Acrobatics check" and then the player rolled a 20 and now you have a humiliated monster with a barrel on his head.