Heat 2 tbsp oil in heavy large saucepan over medium heat. Add onion and garlic and saute until tender, about 10 min. Add tomatoes with their juices, orange peel, oregano, bay leaves and paprika and cook until sauce thickens, stirring occasionally, about 30 min. Discard bay leaves.
Heat remaining 2 tbsp oil in heavy large skillet over medium-high heat. Season chicken with salt and pepper. Add chicken to skillet and saute until cooked through, about 5 min per side. Transfer to plate. Rewarm sauce and spoon over chicken