Greetings to the UNITED BIMMER Community forum.
The above describes to the letter what I have with my 2002 320CI rag-top, which has done 80,000 Km. My mechanic went further to investigate the reason why the light was flickering, and created a temporary contraption to install an analog oil pressure gauge to determine the AMOUNT of pressure that's causing the light to come on. It was about 10psi, tending to 8psi at low revs, and with some load on the motor. All that was with a new Oil pressure sensor, new oil and filter, and no electrical faults.
When comparing the result above with another car (same motor) (Selected a car that's had a rough life) the oil pressure was still in the 20psi even at low revs. So, it was determined that the detection system was fine (the red light).. The Oil pressure WAS indeed low.
We are still wondering what could be the cause of this issue. Suspecting bad oil pump, oil pump gaskets, or an internal leak in the lube system that's causing the pressure drop.
Has anybody found a cause/solution to the problem?? or are you just happy to live with it?? Please post.