Was the tape applied to a tapered pipe thread? Can you take a picture that shows it? People do strange things with pressure fittings and I would not want to say it is ok without seeing what has been done.

I can't take a picture of it right now, but in an oil change or so, I'll take out the line and see if I can fit a camera down there. Basically, the piece that screws inside the oil port has a teflon. I'll absolutely remember to get the picture of it.