Problem with my 1988 vw golfs oil system.

1988 VW Golf 5spd 4dr

I know nothing about my problem but here is how it goes:
I start my car and it starts to rumble and feel strange then the oil light goes on so I get out check the oil nothing is on the dipstick. When I look around I see oil is sprayed all over the engine, radiator, and parking pad. The oil filter is very bulby or round like it has been stretched like a balloon. The rubber ring has been blown to the outside of the filter.

This is the third time this has happend. One mechanic said it was a dirty oil preasure check valve.

What I realy want to know, is it gonna be expensive?

  Dazmo