Sounds about right... I was quoted £95 and £195 last year, for a T&D and Longlife Service respectively.
What is your car currently set to ?
For the £130 T&D service I doubt you will get the better Longlife Oil, as yes, they use different (cheaper oil) for the standard T&D service.
The best service regime really depends on how you drive the car, how many miles a year you do and the type of driving you do (town or motorway - as these affect the longlife servicing period significantly. If you drove 18,000 miles a year and nearly all on Motorway you'd probably be best on Longlife. If you drove 10,000 a year, nearly all around town, you'd probably be best on T&D.