Hi,
For oil/water interface, magnetic level gauges will only give you the level of the combined volume, so you cannot spot the actual interface between oil/water.
For installation, various companies have various standards. TOTAL for instance has a maximum distance C-C on 2000mm. If longer range is needed, then several gauges are used, with an overlap on at least 50mm (visible). However, if the application is rather "nice", it can for sure be a longer gauge - but you might run into problems when aligning the upper/lower nozzle. Additional support might also be necessary.