Remove Chorizo from casings. Slice on diagonal into 1” pieces. Add a small amount of olive oil to a 5 ½ quart stove-top safe casserole or stainless pot. Sauté until brown.
Add peppers, onions and garlic and continue to sauté until onions become translucent.
Add red wine and turn heat higher; add the thyme, oregano, bay leaf, lemon and sugar and reduce liquid by 1/3 (about 5-10 minutes, stirring occasionally).
Pour in a full can of tomatoes with its own juice. Simmer sauce for 30 minutes. Taste test; add salt and pepper, if needed.
Add shrimp and turn off heat after one minute. Stir with wooden spatula. Shrimp should be delicately curled and bright pink - do not overcook.
Serve over white rice and sprinkle generously with chives.
Accompany with toasted baguette slices sprinkled with garlic & olive oil.