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No, oil warning light comes on with low oil pressure, nothing to do with the ignition at all. Sounds like there is enough pressure when the oil is cold but pressure drops as it thins down once it is hot. Change the oil and filter and use something like a 10 or 15W-40 or 50 as recommended. If my geography is correct, I think Perth gets pretty hot so 15W-50 is recommended for use in areas with temperatures between -10 and +50 degrees C.
 

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It's possible that the unburnt fuel from the cylinder that isn't firing is getting past the rings and diluting the oil. Sniff the dipstick, if it smells of petrol change it. Even if it doesn't still change it but if it does you'll know you've found the cause.
 
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