Oil on the electrodes means oil in the cylinder which can come from three problems.
1. Oil in the intake manifold from a malfunctioning CCV system
2. Valve stem seals leaking
3. Piston rings leaking

Start at the easiest to check and work your way down (#1, #3, then #2)
A. Look in the intake manifold for oil (fiber optic camera)
B. Compression test to check rings
C. If the two above don’t show problems, then it’s probably valve stem seals

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2005 X5 4.4i SterlingGrau, Sport Package, DSP
Build 3/12/2005