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This paper presents a solution for detecting contamination of insulating oil used in the artificial lift method of the oil-type electrical submersible pump (ESP), which indirectly protects the induction motor associated with that system. The objective of this sensor is to generate an alarm signal at just the moment when the contamination in the isolated oil is present. The prototype was designed to work in harsh conditions to reach a depth of 2000 m and temperatures up to 200°C. It used simulator software to define the mechanical and electromagnetic variables. Results of field experiments were performed to validate the prototype. The final results performed in an ESP system with a 60-HP motor showed a good reliability and fast response of the prototype.