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An engine oil cooler works as a heat exchanger. It circulates the engine oil through a series of passages or tubes, allowing the heat to dissipate as it does so.

There are 2 main types of engine oil coolers:

Air-cooled oil coolers: Air-cooled oil coolers rely on ambient air to dissipate heat

They use the same working principle that a radiator uses;

 hot oil flows through some tubes with fins that join them. Those fins lower the fluid temperature.  Cooled by liquid: In this type of coolers there flows oil and coolant.