think the oil is free to coat the whole valve stem when there is no seal, with the seal in place the oil is scraped off a bit more to keep the oil coating to a minimum. as the valve opens (stem coated in oil) the hot gases will burn the oil off into the exhaust manifold.
have just tried to find the thread where it was mentioned before, but can't. seem to think it was one of the guys who races/rallies a sud so that would be james&nick or rsfruitbat. sure they will be along soon to clear it up. know they mentioned that oil-smoke is pretty much a guarantee in this set up
