Do you have access to the service tester tool on the server. To me this is easier.

Make sure you dont already have an Oracle service type refistered, you will see it in the list if so.

If not from the tester tool you would select register service type at the top and select sourcecode.smartobjects.services.oracle.oracleservice, choose a name like Oracle Service

Once the type is created, right click and select create service instance.

The basic settings are

Authtentication mode = Impersonate

Ower list = User ID usually

Connection String = Data Source=(DESCRIPTION=(ADDRESS_LIST=(ADDRESS=(PROTOCOL=TCP)(HOST=hostname.com)(PORT=1521)))(CONNECT_DATA=(SERVICE_NAME=servicename)));User Id=userid;Password=passwordr;

I hope this helps.

I have tester tool on server (see item#5 in my original post). I got error while creating instance. 

I saw service type was already there. Should I delete it and recreate?

I would delete and recreate the service type if you dont have any other oracle service instances.

I hope this helps

I deleted service type and tried to add it. "Oracle" service is not even listed in dropdown, while DLL file is there on server.

Always reliable K2 support analyst resolved the issue. While installing ODAC using universal installer, option "ODP.NET and/or Oracle Providers for ASP.NET at machine-wide level" should have been checked. I reinstalled it with this option and everything worked.

Thanks