A system and method for producing fluid from a subterranean wellbore that includes an electrical submersible pump (“ESP”) system and a receptacle. The ESP system is landed in the receptacle while sensing the presence of the ESP system with respect to the receptacle. The ESP system includes a motor, a pump, a monitoring sub, and a stinger on the lower end of the pump. A sensor on the receptacle detects the position of the stinger within the receptacle, and provides an indication that the stinger has inserted a designated length into the receptacle so that a fluid tight seal is formed between the stinger and receptacle.