He has a ohv 4.0, no timing chains, its a 1996
The is the oil pressure sensor for the dash oil pressure gauge
You will need to remove it from the engine and inspect
The white plastic part is just a cover and has nothing to do with sealing in the oil
You likely need to replace the sensor, they are not expensive
Once the sensor is out of the engine you will want to inspect that area really good with a high powered light, make sure there are no cracks/leaks in the metal adapter or engine block, basically the plumbing behind the sensor itself.
Do not OVERTIGHTEN the adapter to engine block fitting is tapered and if you tighten too far it can crack the block (ask me how I know)
Here is the sensor in question:
To get to the sensor you will need a 1-1/8" socket (pretty sure its 1-1/8" don't quote me on that its been a while) and you can get to it from in front of the drivers tire with a ratchet, some extensions and that socket
1996 FORD EXPLORER 4.0L V6 Oil Pressure Sender / Switch | RockAuto
Pretty simple repair really, just make sure its clean when you install the new one
The rattle underneath the truck check your catalytic converter heat shields, sometimes the welds break and they sit down there and rattle like crazy
Good luck!