ON your car, the Prius 1NZ-FXE is known to have LOW TENSION piston rings. After 120,000 MILES (200,000 KMS), the piston rings start to stick/get stuck in the grooves and you will loose oil compression and/or compression in general.
Only cure is to REPLACE all the piston rings with Toyota's updated part. They have changed the LOW TENSION piston ring design to a higher tension design, but you will definitely have to rebuild the engine and replace the piston rings 100% for sure.
You don't have to replace anything else; If you know a competent engine builder (which in this country is highly UNLIKELY), then you can tell him to open the engine up and replace just the piston rings and put everything back together. I would love to help, but I charge a fortune to do this repair by the book and I just don't have time at the moment.