In a stockpot, heat oil over medium heat. Add onion; cook and stir until softened, 3-4 minutes. Add 2 tablespoons garlic; cook 1 minute longer. Add tomatoes, water and 1/2 cup basil; bring to a boil. Reduce heat; simmer, covered, until tomatoes are completely broken down and soft, about 1 hour, stirring occasionally., Press tomato mixture through a food mill into a large bowl; discard skins and seeds. Return tomato mixture to stockpot; add 1/2 cup of remaining basil, oregano and remaining garlic. Bring to a boil. Reduce heat; simmer, uncovered, until thickened, 3-1/2 to 4 hours, stirring occasionally. Add tomato paste and remaining 1/4 cup of basil; season with salt and pepper. , Add 1 tablespoon plus 1-1/2 teaspoons lemon juice to each of 3 hot 1-1/2-pint jars. Ladle hot mixture into jars, leaving 1/2-in. headspace. Remove air bubbles and adjust headspace, if necessary, by adding hot mixture. Wipe rims. Center lids on jars; screw on bands until fingertip tight., Place jars into canner with simmering water, ensuring that they are completely covered with water. Bring to a boil; process for 40 minutes. Remove jars and cool.