Heat olive oil on a medium-high flame in a medium stock pot and then add oregano, bay leaves, salt and pepper. Give a few good stirs to release the flavors of the spices.
Add onions and garlic and sauté for 3-4 minutes, or until translucent.
Add chopped tomatoes and cook down for another 5 minutes or until they start to fall apart.
Add tomato puree and water, and cook over a medium flame for 20 minutes.
Season to taste with salt and pepper.