CORRECTED - UPDATE 1-Fire cuts Suncor oil sands production by 85,000bpd

(Corrects oil production cut in headline and first paragraph to 85,000 barrels per day from 65,000)

CALGARY, Alberta, Oct 2 (Reuters) - Suncor Energy Inc (SU.TO) said production at its oil sands project near Fort McMurray, Alberta, was cut by 85,000 barrels per day, to 175,000 bpd, after a small fire on Tuesday morning.

A spokeswoman for the company, Canada's No. 2 oil producer, said the fire was quickly extinguished with no injuries. However staff in the area were evacuated as a precaution and some were asked to stay away from work for the day because of fumes in the area.

The fire was at one of the company's two upgraders, which convert the tar-like bitumen stripped from the oil sands into refinery-ready synthetic crude.

The fire is the second problem in as many days for major oil sands producer. Syncrude Canada Ltd, the biggest project in the region, was forced to cut production by 70,000 barrels a day on Monday after a coker unit malfunctioned.

Patti Lewis, a spokeswoman for Suncor, said it was too early to say when full output would resume.