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I don't think the wire is shielded. I've been mulling this problem over myself. I got an O2 sensor from a 90's Ford Mustang that is supposed to be a perfect substitute (at 1/5 the price) but I discovered that Ford no longer sells the mating connector (or at least that's what the dealer says).
It gets really hot there and I don't think even excellent heat shrink tubing (or even solder, for that matter) will survive if anything lays against the metal; make certain to dress the wire away from everything.
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