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I bought this vehicle ca. 1 month ago, I checked the oil when I bought it and saw no issues.
It had received oil filter and oil change 2 weeks before I bought it by a mechanic.
I and my friend were driving on a 2-hour trip and smelt an oil smell, after inspecting the dipstick it had what seems to me like a mix between coolant and oil.
On the way towards a gas station, the oil lamp lighted for a split second, then went dark.
I filled up more oil after this.
Could someone assist on what could be causing this issue and possible solutions?
are you consuming coolant or just oil? if you are consuming coolant and seeing frothing on the dipstick (and potentially at the oil fill cap) then a failed head gasket comes to mind. It is possible to get some condensation in there so its not alway the gasket. If your coolant level is constant and the coolant looks clean, other causes could be the PCV system or possibly blowby. You can check for a clogged PCV system by doing the rubber glove test (latex/surgeons glove over the oil fill port - start the car and if the glove inflates, time to service the PCV. To check for blowby, you'd need to do a dry/wet compression test. You can rent a compression gauge a a big box parts store like Autozone. warm up the car, shut off, pull out all the plugs and crank 5 or 10 seconds should do. For an NA, compression should be 180+ PSI and no more than 10% variation. for a turbo, 155-160+ is target. If you have any low readings, drop a few table spoons of motor oil down the spark plug hole and test again. If the compression comes up to target, your rings are worn. if it stays low, then you have a valve or head gasket issue. RobertDIY has some excellent vids on Youtube on all of these topics. There's some other tests for head gasket leaks including a test kit (about $40) that measures HCs in the coolant (ie combustion gasses push their way into the cooling system).
Sure looks like you have a bad head gasket and there is coolant leaking into the engine oil. If so as stated above you should be losing coolant and you might see some scum or oil floating in the coolant recovery tank. While it's still cool you can take off the recovery tank cap and start it up. You are looking for any bubbling in that recovery tank. That would be combustion gasses leaking into the coolant.
There is also a simple test with a tool that goes into the recovery tank. A shop can run the test or you can get the tool as a loaner from some of the different auto parts stores.