Heat oil in a small frying pan over medium heat. Add the onion and the capsicum,and cook for 3-5 minutes until softened.
Stir in the garlic and chilli and cook for 30 seconds until fragrant. Add the pesto,chopped tomatoes,sugar and vinegar and cook covered on low heat for 10-15 minutes,stirring regularly,until mixture has broken down and liquid has reduced. Stir through the olives and basil and check the seasoning.
Cook the chorizo slices in a little olive oil in a non-stick pan until lightly golden on both sides. Set aside. Reserve the oil the chorizo has been cooked in and set aside.
Place chorizo slices in capsicum mixture and,using the back of a spoon,dig 5 hollows.
Crack the eggs into each hollow,drizzle with olive oil and sprinkle with oregano leaves. Cook covered over a low heat for 8-10 minutes or until eggs are cooked just the way you like them.
Drizzle the reserved chorizo-flavoured oil over the top and mop up the pan juices with crusty bread.