Update:
So i pulled old sensor out. Was an aftermarket one by the looks of it. I tested grounds and bulb works just fine in the dash. Got the oil testing gauge in there and the readings were about 20psi idle and 70psi at 3k rpm.
Bearings definitely arent worn because the minimums to pass were 10psi at idle and 50psi at 3k rpm
Looks like faulty oil pressure sensor. Diagnosis complete. Thanks guys.