Heat the olive oil in a large skillet over medium heat. Saute shallots until soft, about 4-5 minutes. Add the garlic and cook, stirring, until fragrant, 1 minute. Add in paprika powder and stir well. Add the white wine vinegar and cook until evaporated, then stir in the Worcestershire sauce and 2 tablespoons tomato ketchup; cook for a minute. In a small bowl, mix together the remaining ketchup and water. Pour this sauce over the onion mixture. Cook and stir sauce on medium-low heat until the sauce thickens. Season with salt and pepper to taste. Remove from heat and set aside.