Heat oil over medium high. Cook onions until golden, 10-15 minutes.
Add garlic and oregano and cook 1 minute.
Add the tomato paste and cook about 1 minute.
Add wine and cook until slightly thickened, about 2 minutes.
Stir in water and tomatoes and simmer over low heat until sauce is thickened, about 45 to 60 minutes.
Stir in cheese and basil. Add salt, sugar, and and red pepper flakes to taste.