Hi NandoMed,
the blue smoke indicates worn or broken piston rings, and possibly worn valve guides. The repair cost depends on the mechanic. Some mechanics take an engine and immediately schedule parts reconditioning to ensure success, relying on their expertise to avoid risks. In this case, consider piston rings, connecting rod bearings, main bearings, thrust bearings, a complete gasket set, and possibly some ball bearings. You'll need to measure the cylinders. If wear and/or ovality are within acceptable limits, they can be left as is. Measure the connecting rod and main bearing journals to ensure they are within tolerance, as well as the valve guides. These reconditioning operations are the most expensive part of a repair, as these engines are typically made of high-quality, wear-resistant material. Also, when switching to a diesel engine, you should consider the transmission, as these engines are slower and won't provide the same operating speed as your current transmission.
I hope this comment has been helpful. Good luck.
Miguel