Thanks guys.
I wasn't too sure how resistant to oil PTFE tape is and a search led me to LOCTITE 567 PTS. It is basically like the PTFE tape but in liquid form, and can be used in very hot environments and does not deteriorate in oil.
I thought of getting it as I want to also use it on the oil to turbo feeder pipe.
Unfortunately it's a bit hard to get hold of in the UK (its big in the US), and I called Frost who told me that they didnt stock it but had something similar called "lock and seal". I have my reservations, as to whether it really is similar, but I have ordered it and will see how it fairs.