This pipe can be moved back and forth a few mm with ease and has this oily spot around it, should it be a tight fit car drives no issues no smoke etc

Click image to enlarge

A few posts on here about this. Common to be a little loose. I replaced mine as part of preventative maintenance program. Remove the metal clip, tighten it by making smaller and refit. See if that helps. Gone to a good home: 2011 4.4 TDV8 Vogue SE Buckingham Blue with Ivory and clear glass = "Rory"
2025MY Defender D350 90 in Silicon Silver on coils
1974 Series 3 Lightweight = "Millie"
Many, many other Landies over the years
My preferred specialist: www.glenrands.co.uk
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I agree with Rob about it being common to be a little loose.

However, from looking at the photo, I'd be tempted to take it off, clean and inspect. It does, as far as I can see, look as though there may be a split/crack at the top.

If you do remove it take particular care with the small coolant pipes running over it as it very easy to break the stubs from the four way connector adjacent. Cheers
Richard

(there are no such things as an ordinary FullFat, an ordinary cat or too many tools)
2011 TDV8 Vogue Santorini Black
Gap IIDBT

Mine was the same when I did the oil cooler seals. It was and still is ok and not causing any problems.