Years ago, when it was leaked, a poster said this:
It is done currently using a pairing system, so it means that the remaster is running using both an Unreal Engine 5 project, and the old Oblivion one. For instance, new graphics are rendered in the UE5 project, but most of the gameplay/physics/etc is still done in Oblivion.
People are saying it’s UE5.
Years ago, when it was leaked, a poster said this: