Blue smoke suggests it's burning oil, it could be the turbo, although they usually rev themselves to destruction if that's the case. Probably pistons/rings failed. Difficult to diagnose without seeing it. Sorry to say this but it sounds expensive.
yea unfortunately jak01 is right. Just make sure to check the turbo and seals on turbo and if its not that then check piston rings.
I wouldnt suggest driving it like that since they can just start revving themselves "to destruction "if the intercooler gets full of oil.
If the car does rev itself you must put it in gear and hold the brake so that the engine stalls itself . That is the only way to stop it revving
Once you have diagnosed the problem just clean out the intercooler you will probably find it is full of oil. (you can do this with petrol or sending it off to a radiator repair place )